In north Brooklyn, David Bistricer has secured new financing for a rental complex in Greenpoint. However, his firm, Clipper Equity, is facing foreclosure on an office property at 250 Livingston Street in Downtown Brooklyn. According to Crain’s, the mortgage for the building will be transferred to special servicing next week after Clipper became delinquent on its $125 million mortgage last month.
Clipper Equity is considering handing over the property to lenders but Bistricer remains hopeful about reaching an agreement with them and avoiding foreclosure. The firm has enlisted IronHound Management to help with negotiations. In a recent filing, Clipper stated it “does not plan to continue to support the ongoing operating and debt service shortfall related to” 250 Livingston Street and intends to seek a sale of the property.
In March, lenders informed Bistricer’s legal team that he was in default because not all required rental revenue had been deposited into a designated account. They threatened foreclosure if the mortgage was not paid off in full but have yet to initiate proceedings.
The situation worsened when New York City’s Human Resources Administration vacated 350,000 square feet at 250 Livingston Street and moved operations to 2440 Fulton Street. Bistricer said negotiations are underway with a potential tenant for part of the vacant space but did not disclose further details.
This is not Clipper Equity’s first financial challenge in Brooklyn’s office market. Last year, Morningstar Credit reported a delinquent loan tied to 141 Livingston Street. After Kings County Civil Court chose not to renew its lease there, Clipper defaulted on the $100 million mortgage for that property as well, prompting lenders to file for foreclosure.
